Rent to Own Homes in Alabama

Overview

Treasuring its long and complex history while embracing its cutting-edge industries, Alabama is a diverse and unique state. In many ways, the state is quintessentially Southern with lush, green landscapes, friendly residents, charming traditions and gorgeous historic homes. It is also extremely modern, home to many aerospace enterprises, Armed Forces installations like the Redstone Arsenal and the United States Missile Defense Agency.

Montgomery is the state capital, home to the state legislature and several large employers, including Baptist Medical Center South, Hyundai Motor Manufacturing Alabama and Maxwell-Gunter Air Force Base. Montgomery isn’t the biggest city in the state, though, as that honor goes to Birmingham’s metro population of 1.1 million.

Treasuring its long and complex history while embracing its cutting-edge industries, Alabama is a diverse and unique state. In many ways, the state is quintessentially Southern with lush, green landscapes, friendly residents, charming traditions and gorgeous historic homes. It is also extremely modern, home to many aerospace enterprises, Armed Forces installations like the Redstone Arsenal and the United States Missile Defense Agency.

Montgomery is the state capital, home to the state legislature and several large employers, including Baptist Medical Center South, Hyundai Motor Manufacturing Alabama and Maxwell-Gunter Air Force Base. Montgomery isn’t the biggest city in the state, though, as that honor goes to Birmingham’s metro population of 1.1 million.

Alabama has a long history and an important place in the United States. Native Americans lived on these lands thousands of years before European settlers arrived on site, and some of the early cultures’ relics are found at Moundville Archeological Site. Explorers first came to Alabama in the 16th century, paving the way for European settlement in the 18th century. What followed over the next century was a mix of cultures coming into the state, from the exploring Spaniards to African Americans, each adding to the state’s culture, history and governance. The Alabama Territory convened the Alabama Legislature in 1818, creating the state constitution and achieving statehood in 1819.

Buying a Home in Alabama

Home prices in Alabama remain affordable in many areas of the state, even with occasional monthly price fluctuations. Across Alabama, median home prices rose modestly at .5 percent to $132,399, nearly half the cost of the national median home price of $228,700. The average selling price is also economical in spite of an increase of 1.41 percent to $158,971.

As a home buyer, you can also appreciate the wide variety of homes on the market and take your time while making a decision, since homes stay on the market an average of 155 days. That selling pace is slightly faster than in previous years, but the quickening pace is steady and measured.

Of the large metropolitan areas, Mobile boasts the most affordable median home prices, at $123,238. The region’s average selling price is equally affordable at $144,393. Even the most expensive metro area, Birmingham, has a median home price of $177,581 and an average selling price of $215,350. Most of those prices reflect a 6 percent increase for the year.

In mid-size markets, Calhoun County has the least expensive pricing, with median home prices at $102,466 and average selling price at $122,169. The most costly mid-size market is in Baldwin, where homes have a median price of $211,838 and an average selling price of $258,505. Monroe and Marshal counties are the most budget-friendly rural markets, both offering median home prices below $100,000.

Popular Neighborhoods in Alabama

Alabama’s big cities, including Birmingham, Huntsville, Mobile and Montgomery are popular places to live, blessed with excellent job opportunities, congenial neighborhoods and a wide range of home prices. Birmingham’s Avondale neighborhoods is especially attractive to families, singles and retirees who enjoy walkable streets and a number of restaurants, shops and art displays within steps of their homes.

Most of Alabama’s military, aerospace and missile operations are located in or near Huntsville, so it’s a popular place to live and work. Several historic neighborhoods provide welcoming homes for locals, including Old Town, Five Points and Twickenham. Hampton Ridge and Monte Sano Mountain are also conveniently located and are filled with a range of newer and mature homes.

The Spring Hill neighborhood of Mobile is captivating and picturesque, with several antebellum summer homes and mansions at the end of long, tree-lined entrances. A similar, but slightly less grand charm is seen in Montgomery’s Historic Garden District, filled with bungalows and Greek and Colonial revival architecture.

Buying vs. Rent to Own Homes

For first-time home buyers and those who dread undertaking the conventional home buying process, rent-to-own options provide a welcome alternative. Since rent-to-own arrangements rely less on credit ratings and sizable down payments, much of the financial stress is removed from the process. Most rent-to-own contracts last for one to three years, giving buyers time to accumulate sufficient down payments, repair credit ratings and find suitable mortgages. There are other financial advantages of a rent-to-own arrangement as well. Buyers negotiate and lock in the home’s purchase price at today’s value, a notable bonus for area’s where home prices are on the rise. Buyers are also allowed to move into the property immediately, rather than waiting one to three months as they would with a conventional home purchase.

Cost of Living in Alabama

Alabama is uniquely affordable, with a cost of living that is 10 percent less expensive than the national average. By all measurements, Alabama residents save money on living expenses. Housing is 26 percent cheaper than in the rest of the nation, providing excellent value for first-time home buyers and those who are interested in vacation homes and investment properties. Health care is also notably economical, costing residents 12 percent less than the U.S. average. Other categories are closer to the norm. Utilities, transportation and groceries are at or just below the national average.

Summary

Roll tide! The University of Alabama is just one of the state’s many bright spots, ranked in the top 50 public universities in the nation. The university also is home to a wildly successful sports program.

The state’s strong university system is just part of Alabama’s appeal though. Residents enjoy a robust range of local services and amenities, from beautiful parks to historic sites. These traits enrich the state’s high quality of life, made possible with a remarkably low cost of living. In fact, for every dollar other Americans spend on essentials, Alabama residents spend less than 90 cents.

Alabama’s affordable and well-supplied housing market is also a benefit for local residents. Homes here are just 74 percent the cost of the national average, and even more-expensive towns feature median and average home prices that are below the national costs. In spite of their low cost, Alabama homes and neighborhoods are fabulously desirable and range from new subdivisions to grand historic homes.

About Rent To Own Labs

Our goal is to help you find the ideal rent to own home. To do that, we’ve had to experiment with a lot of crazy things to make that happen (thus our name!). We’re consistently trying new things, working with new partners, and overall, trying to make your search experience as seamless as possible. At the end of the day, we know how important it is to find the perfect home, and we’re excited to help you find it, and to help you through the entire process.